Strongest increase in UK private sector business activity observed since April 2024

UK Private Sector Sees Strongest Growth in Nearly Two Years

At the beginning of 2026, businesses in the UK’s private sector experienced a notable rise in output, marking the fastest pace of growth seen in almost two years. This surge was primarily driven by a significant and quickening expansion within the service industry.

Data from January also revealed a continued increase in new orders throughout the private sector, fueling the highest level of business confidence observed in the past 16 months. Despite this positive momentum, companies continued to face pronounced increases in input costs, leading to the sharpest rise in average selling prices since August 2025.

The sector’s performance index climbed to 53.9 in January, reflecting this robust expansion.